Lovesac Stock Plummets On Q3 Earnings Miss: Retail Heartbroken
By Stocktwits Inc | First Published Dec 12, 2024, 10:26 PM ISTThe company’s net sales fell 2.7% compared to the year-ago period, led by a decrease of 8.3% in omnichannel comparable net sales
Shares of Lovesac ($LOVE) were down 25% on Thursday morning after the home furnishing company posted third-quarter earnings missed analyst estimates, dampening retail sentiment.
Stamford, Conn.-based Lovesac posted a net loss of $4.9 million or loss per share of $0.32, wider than the $2.3 million or per share loss of $0.15 seen last year in the same period.
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Its net sales fell 2.7% compared to the year-ago period, led by a decrease of 8.3% in omni-channel comparable net sales, which the company said was partially offset by the net addition of 28 new showrooms.
“Near-term headwinds for our category clearly persisted through the pre-election period,” Shawn Nelson, CEO, said, adding the fundamental drivers of the business - including brand equity, innovation pipeline, and customer relationship opportunities - are strong.
Retail sentiment on the stock fell to the lowest levels seen this year in the ‘extremely bearish’ (5/100) territory, down from ‘neutral’ (54/100) a month ago. Message volume jumped to ‘extremely high’ from ‘normal.’
For fiscal 2025, the company lowered its guidance on net sales, expecting it to fall between $660 million and $680 million, compared to the earlier stated $700 million and $735 million.
It expects diluted income per common share in the range of $0.27 to $0.74, reduced from the earlier expected $1.01 and $1.26.
For the fourth quarter of fiscal 2025, it expects net sales of $221 million to $241 million and diluted income per common share of $1.67 to $2.14.
Lovesac stock is up 7% year-to-date.
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